LIC New Jeevan Anand is one the most popular Endowment life insurance plan of the Life Insurance Corporation. It gives you risk cover for whole life. LIC is promoting this policy heavily through the print and digital medium.
Is your LIC agent also pushing for this plan? It is better to understand this policy before taking any decision. This post would decode the LIC New Jeevan Anand.
Features of LIC New Jeevan Anand
It is an Endowment Insurance Plan
The endowment insurance plans are those plans which promise to give a fixed amount after the death. It also gives a fixed amount when the policy matures. In other words, It gives money after the death as well as on survival. In fact, An endowment insurance plan is the combination of term life insurance plan and Investment plan.
It is a Whole Life Policy
The LIC Jeevan Anand is Whole life insurance policy. It means you would get the insurance cover till the death. You get this cover even after the end of the policy period. This cover goes up to the age of 100.
The Whole life Endowment insurance plan gives you money two times. First at the time of policy maturity and second after the policyholder dies or attains the age of 100.
It is A Participating Policy
LIC New Jeevan Anand is a participating life insurance policy. It means you are eligible for bonuses. The LIC gives simple reversionary bonus every year. In addition to this, it may also give final additional bonus and loyalty bonus.
The Bonus from the LIC depends upon the surplus income of the corporation. In fact, the participating insurance plan makes you a partner of the LIC profit. LIC distributes 90% of its surplus as the bonus.
Accidental Death and Disability Benefit Rider
The LIC New Jeevan Anand gives you the option to take a rider, the Accidental Death and Disability Benefit Rider. In the case of accidental death during the policy term, you would get Accident Benefit Sum Assured as well as death benefit sum assured. We can say that because of this rider one get much more insurance claim in case death happens due to the accident.
Also, If one get disable because of an accident, this rider pays accident benefit sum assured in equal monthly instalments spread over 10 years. You are also not required to pay any premium for the remaining term. However, the disability should happen within 6 months of the accident.
Note, To avail the benefit of rider you have to pay the extra premium.
Other Plans of LIC
Rules of LIC New Jeevan Anand
- Minimum Basic Sum Assured : Rs. 100,000
- Maximum Basic Sum Assured : No Limit
- Minimum Age at entry : 18 years (completed)
- Maximum Age at entry : 50 years (nearest birthday)
- Maximum Maturity Age : 75 years (nearest birthday)
- Minimum Policy Term : 15 years
- Maximum Policy Term : 35 years
- Premium Frequency Available: Annual, Half Yearly, Quarterly, monthly
- Grace Period: 1 month (For monthly payment only 15 days)
Rules of Accidental Death and Disability Benefit Rider
- Minimum Accident Benefit Sum Assured : Rs. 100,000
- Maximum Accident Benefit Sum Assured : Basic sum assured (Max 1 Crore)
- Minimum Age at entry : 18 years (completed)
- Maximum Age at entry : The cover can be opted for at any policy anniversary during the policy term but before the age of 70 years.
- Rider ends at the age of 70 years (nearest birthday) or till the end of the Policy Term, whichever is earlier.
Sample Premium Rates
These are the sample premium rates of LIC New Jeevan Anand Policy for the basic sum assured of Rs 10 lacs. These premiums are for a year. It does not include the service tax.
|Policy Term (in years)|
|Age (in years)||15||25||35|
Rebate in Premium
The LIC gives 2% rebate to those who pays premium annually. There is 1% rebate for half yearly payment.
The LIC also gives the rebate for high sum assured. It is as follows.
1,00,000 to 1, 95,000 – Nil
2,00,000 to 4, 95,000 – 1.50%o basic sum assured
5,00,000 and 9, 95,000 – 2.50%o basic sum assured
10,00,000 and above – 3.00%o basic sum assured
What if You Miss the Premium Payment
In the normal course, you have to pay a premium before the due date. But, after the due date, you get a grace period which is normally for one month. If the premium is paid monthly, the grace period comes down to 15 days.
If you do not pay the premium before the end of grace period, the Policy lapses.
Even after the policy lapse, you will keep on getting life insurance cover. However, the insurance cover amount will decrease. The reduction in insurance cover would be done on the basis of total tenure of policy and remaining tenure. If you have continued the policy for 10 years instead of 20, then your insurance cover amount would come down to 50%.
The policy with reduced life insurance cover is termed as the Paid UP Life insurance Policy. For a paid up policy, the premium you have paid till date is considered for the remaining tenure. The reduced cover amount is called as the paid up value.
Calculation of Paid UP Value
The calculation of paid value is simple. You can use the following formula
Basic Sum assured x Number of policy paid Years
Total Policy duration in years
Terms And Condition of LIC Jeevan Ananad Paid Up Policy
- The LIC would give paid up sum assured at the time of maturity or death, whichever happens early.
- The LIC would also give the accumulated bonuses.
- You would not get any further bonus once the policy converts into a paid up insurance policy.
- There is no paid-up value of rider.
Revival of Lapsed New Jeevan Anand Policy
You can revive your lapsed policy within two years. To revive the policy you have to pay all the unpaid premium with interest. The interest rate is fixed by the LIC time to time.
However, you can revive policy only if you are not suffering with any life threatening disease. Not to mention, only LIC takes the decision whether it will revive a policy or not.
You can also revive the riders along with the LIC New Jeevan Anand.
The Surrender of LIC Policy
If you find that LIC New Jeevan Anand is not suitable, you can surrender it before the maturity date. You would get some amount against the surrender of the policy. The LIC has decided the surrender value of LIC New Jeevan Anand, you can check the table given below.
These are the rules of LIC policy surrender
- You should have paid the premium for at least three years.
- The Guaranteed surrender value would be the percentage of total premium paid. Remember it would never exceed to total premium paid.
- While calculating surrender value, the LIC does not consider surrender value.
- The LIC reduces the amount of bonus. The reduction happens similarly to Sum assured.
Loan Against LIC Policy
Like other conventional insurance schemes, you can take loan from the bank against the LIC New Jeevan Anand policy. The LIC papers are used as a mortgage to take a loan.
In This post, I have told you about the features of LIC New Jeevan Anand. Now you know this policy. Do you also want to analyse this policy? Do you want to know the positive and Negative point of LIC New Jeevan Anand? You must read the review of LIC New Jeevan Anand.